What is the minimum amount of general liability insurance required for Florida general contractors?
Correct Answer
B) $300,000
Florida law requires general contractors to maintain minimum general liability insurance of $300,000. This is a basic requirement for license maintenance.
Why This Is the Correct Answer
Florida Statute 489.115 specifically mandates that general contractors must maintain a minimum of $300,000 in general liability insurance coverage. This requirement is part of the licensing prerequisites and must be maintained throughout the license period. The insurance must cover bodily injury and property damage claims that may arise from the contractor's operations. Failure to maintain this minimum coverage can result in license suspension or revocation.
Why the Other Options Are Wrong
Option A: $100,000
$100,000 is insufficient and below the statutory minimum requirement set by Florida law for general contractors.
Option C: $500,000
$500,000 exceeds the minimum requirement, though contractors may choose to carry higher coverage amounts for better protection.
Option D: $1,000,000
$1,000,000 is well above the minimum requirement and represents a higher level of coverage that some contractors voluntarily obtain.
Memory Technique
Think '3 for Florida' - $300,000 is the magic number for general liability insurance minimums in the Sunshine State.
Reference Hint
Florida Statutes Chapter 489 - Contracting, specifically Section 489.115 regarding insurance requirements
More Business & Finance Questions
A contractor's license expires on March 31st. If they submit a renewal application on April 15th, what additional requirement must be met under Florida regulations?
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What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
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